COP29: Sembcorp, PLN EPI sign agreement for hydrogen pipeline between Indonesia and Singapore

Sembcorp Industries has signed a joint development framework agreement with PLN Energi Primer Indonesia (PLN EPI) to establish a potential hydrogen transportation pipeline between Indonesia and Singapore, the energy firm said Nov. 13.

The agreement, signed at the ongoing UN Climate Change Conference (COP29) in Azerbaijan, aims to establish a potential hydrogen transportation pipeline connecting Sumatra, the Riau Islands in Indonesia, and Singapore, Sembcorp said.

"These initiatives will drive Southeast Asia's most significant hydrogen development efforts," Sembcorp said. "The cross-border tripartite collaboration will advance both Singapore's and Indonesia's hydrogen ambitions and align with their national decarbonization plans."

This plan taps on the expertise of Transportasi Gas Indonesia (TGI), the owner-operator of natural gas transportation across Indonesia, to facilitate the creation of a regional hydrogen hub, Sembcorp said.

PLN EPI, a joint venture company between Pertamina Gas Negara and Transasia Pipeline Company, is a sub-holding company of PLN (Persero) and TGI.

The agreement follows the companies' announcement in October which said they plan to develop a 100,000 mt/year renewable hydrogen project in Indonesia.

In October, Sembcorp said the first phase of the feasibility study, which focused on site selection, risk assessments, mitigation analysis and technical schematic development, has been successfully completed.

Sembcorp and PLN EPI will now progress to the next phase of development, which involves detailed engineering and commercial structuring of the project, it said.

Platts, part of S&P Global Commodity Insights, assessed Western Australia hydrogen produced via alkaline electrolysis (including capex) at $2.47/kg Nov. 12, down 47% from a month ago.

It assessed Japan hydrogen produced via alkaline electrolysis (including capex) at $4.99/kg Nov. 12, up 4% from a month ago.